Light olefins
Overview
The global light olefins market is made up of ethylene and propylene monomers. These product markets can be affected by a great many factors.
Ethylene is the most widely used commodity chemical and is produced globally in all major regions. It is converted into many products used in daily life like plastic packaging, durable goods, hygiene products and other consumer items. The ethylene market is driven primarily by regions of low production cost and regions of high demand growth. Polyethylene, ethylene’s largest derivative, represents about 65pc of global ethylene demand. Anyone involved in the ethylene industry – directly or indirectly – needs market and pricing insight to anticipate supply shortages and potential swings in pricing.
Propylene is the second most widely used commodity chemical and is produced globally in all major regions. Propylene is a volatile commodity because of its predominantly co-product nature and unpredictable supply, but recently the industry has been trending to more on-purpose production. It is converted into many products used in daily life like plastic packaging, durable goods, automotive products, and woven fabrics. Polypropylene, propylene ’s largest derivative, represents about 70pc of global propylene demand. Anyone involved in the propylene industry – directly or indirectly – needs market and pricing insight to anticipate supply shortages and potential swings in pricing.
Our light olefins experts will help you determine what trends to track and how to stay competitive in today’s ever-changing global market.
Latest light olefins news
Browse the latest market moving news on the global light olefins industry.
Japan’s Shin-Etsu reduces domestic PVC production
Japan’s Shin-Etsu reduces domestic PVC production
Tokyo, 17 March (Argus) — Japanese chemical company Shin-Etsu Chemical has reduced domestic polyvinyl chloride (PVC) production and decided to raise domestic sales prices, because of limited supplies of feedstock ethylene. Shin-Etsu will raise domestic sales prices for PVC by more than ¥30/kg ($0.18/kg) starting with deliveries on 1 April, the company said on 16 March. This equates to an increase of approximately 20pc in sales prices, it added. Shin-Etsu has a production capacity of 550,000 t/yr for PVC at its Kashima plant in Ibaraki prefecture, where it receives supplies of feedstock ethylene from petrochemical producer Mitsubishi Chemical's Ibaraki plant. Mitsubishi Chemical has already cut operating rates at its 485,000 t/yr naphtha-fed cracker at the Ibaraki plant because of concerns over naphtha supplies due to the US-Israel war with Iran. Ethylene prices have spiked, and Mitsubishi Chemical has started limiting supply volumes of ethylene, which has forced Shin-Etsu to reduce its PVC production, review sales prices and limit supply volumes, Shin-Etsu said. The company's other products have not been affected by the limited ethylene deliveries, it added. By Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Indian polymer makers cut output on gas use curbs
Indian polymer makers cut output on gas use curbs
Mumbai, 16 March (Argus) — Several Indian petrochemical producers have cut polymers production after the government restricted access to feedstock natural gas supplies following the de facto closure of the strait of Hormuz. The government last week told gas distributors to start full or partial curtailment of gas supplies to petrochemical plants , including ONGC Petro Additions (Opal), Gail's Pata petrochemical complex, Reliance's oil-to-chemicals units and other high-pressure, high-temperature gas consumers, as well as power plants. New Delhi has also directed local refineries to prioritise domestic cooking gas needs by redirecting propane, butane, propylene, and butenes output away from petrochemical production. Before the disruption, India's domestic LPG output met about 40pc of national demand. About 90pc of India's LPG imports came from the Middle East. State-controlled Indian Oil has shut one of two polypropylene (PP) production lines at its Paradip facility in Odisha, with the other running at lower run rates, market sources said. The company's Panipat naphtha cracker is also running at reduced rates, a source said, without disclosing current rates at the plants. The Panipat and Paradip facilities have PP production capacities of 600,000 t/yr and 680,000 t/yr, respectively. Mangalore Refinery and Petrochemicals, a subsidiary of state-owned ONGC, has also cut output at its 440,000 t/yr PP plant in Mangalore in the southern state of Karnataka, a market source said. Reliance Industries has reduced output at some of its PP facilities, another market source added. The company has total PP production capacity of 2.97mn t/yr across Hazira, Jamnagar and Vadodara in the western state of Gujarat and Nagothane in neighbouring Maharashtra. On 5 March, Opal said production from its Dahej plant was affected by feedstock supply disruptions caused by the Iran war. State-owned Gail has also brought forward its planned shutdown of the Pata complex by a week to comply with the latest government order. The plant has a linear low-density polyethylene/high density polyethylene (LLDPE/HDPE) swing unit with a capacity of 610,000 t/yr and a separate HDPE unit of 200,000 t/yr. Risks of full shut down The Middle East accounts for 53pc of India's total PP imports, or 847,000t, and 62pc of India's total PE imports, or around 1.28mn t. With overseas supply largely absent, converters are relying on domestic producers for prompt shipments. But continued reduced output at local producers could tighten supplies further. Indian converters, particularly small-scale producers, risk facility shutdowns as domestic polymers prices have gone up by over 40pc for most grades since the war began because of the supply crunch. "There will be a demand destruction," if the conflict drags on, a Mumbai-based market source said. Smaller converters are unable to absorb the higher prices, another market source added. "We are already hearing that many customers are planning on closing down," the source said. To fill the gap left by Middle East producers, some Chinese suppliers are sending PP cargoes to India, but volumes are limited as some expect prices to rise further. PE supply is even tighter, several market participants said. By Sourasis Bose Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Singapore’s TPC declares FM on upstream supply woes
Singapore’s TPC declares FM on upstream supply woes
Singapore, 9 March (Argus) — Singapore's polyolefins producer TPC has declared force majeure (FM) on 9 March after shutting multiple plants on Jurong Island following the absence of olefins supplies from its upstream supplier PCS due to the US-Iran conflict. TPC takes olefins supplies from nearby cracker operator PCS, which declared FM on 5 March because of feedstock supply disruptions arising from the ongoing US-Iran war. PCS' crackers are likely operating at reduced rates, limiting olefins supply to TPC and prompting production to be affected. As a result, "production lines are forced to stop for an extended period," the producer said in a company statement seen by Argus . TPC operates two polypropylene (PP) units with a combined capacity of 400,000 t/yr, as well as a 250,000 t/yr low-density polyethylene/ethylene-vinyl acetate swing unit. Its largest 250,000 t/yr PP unit was shut in May 2025 for an undisclosed period due to commercial reasons . TPC is a joint venture between Nihon Singapore Polyolefin (NSPC), which holds a 70pc stake, and Qatar Petroleum International together with Singapore's Shell Petrochemicals, which collectively hold the remaining 30pc. Japan's Sumitomo Chemical is the majority shareholder of NSPC. "At this stage, the duration of the Force Majeure event remains uncertain," the company said. Petrochemical producers in southeast Asia are heavily impacted by the raw material supply disruptions from the Middle East. Singapore's Aster and PCS, along with Indonesia's Chandra Asri , all issued FM notices last week. By Zong Ming Shin and Toong Shien Lee Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US recycled plastics hold steady amid Iran war
US recycled plastics hold steady amid Iran war
Houston, 6 March (Argus) — US recycled plastics markets largely holding steady this week despite the outbreak of war in the Middle East, as participants adopt a "wait-and-see" stance amid emerging feedstock and shipping uncertainty. Recycled polyethylene terephthalate (PET) prices remained unchanged for the week ending 6 March, recycled polypropylene (PP) edged up only 1¢/lb to 9¢/lb, and natural polyethylene (PE) increased by 13¢/lb to 72.50¢/lb, with no evidence of panic buying or meaningful shifts in demand. Virgin PE and PP markets have reacted more immediately to the war-driven rise in crude, however, as US producers issued March contract increases of up to 10¢/lb and signaled additional increases of as much as 10¢/lb for April . Virigin blow-molding fas Houston export prices were assessed at 46¢/lb this week and PP homopolymer fas Houston export prices were assessed at 49.5¢/lb. But even with the rising prices for Virgin PET and PE, recycled material are still significantly more expensive and remain uncompetitive, although there is no "magical number" that will spark the change, market participants said. Some recyclers note that China's heavy reliance on Iranian crude and the potential for continued export disruptions could tighten Asian polymer supply and influence global price spreads. This could eventually filter into the US markets if shipping routes remain constrained. The recycled market tends to react slowly, even on sharp crude price increases, because it takes a while for the higher virgin resin prices to flow through to the bale market. Plentiful domestic supply can also help buffer the market from geopolitical shocks. A few recyclers are monitoring freight markets closely but see no immediate impact on domestic supply availability. Any potential upside for recycled markets stemming from tighter virgin supply could be offset if geopolitical tensions lead to broader shipping delays, higher freight rates or interruptions in imported bale and flake flows. By Dona Davis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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